Official statistics from Zhangjiagang Inspection and Quarantine Bureau show that coal imports during the first 10 months of 2010 dropped by 31.5 per cent year-on-year to 1.09m tons. The Jiangsu province port recorded an 18 per cent fall in value to US$180m.

Rising coal prices and higher shipping costs on the weakening dollar have been major factors. The cost and freight from Canada and Australia has risen from US$165 per ton at the peak in 2009 to the current price of US$232, which is similar to prevailing prices in the domestic market. Another factor has been the imposition of power restrictions by local governments in Jiangsu and Zhejiang provinces to control carbon emissions, which has led to a drop in production at some iron and steel plants, thereby further reducing the demand for coal.